Kazakhstan's Aikan Dairy Cuts Production to 10% Amid Tax Law Turmoil

Aikan, one of Kazakhstan’s largest dairy producers, has seen its production lines drop to just 10% capacity. The company, known for its Emir brand, now faces major challenges after recent changes to tax laws disrupted its supply chain. The company’s journey began in 2000 when Aikan Mukharem and Almagul Kudoybergenova started their own cheese production. In 2012, they opened a new plant under the Emir brand, initially producing only Emir cheese. Over time, the range grew to include brined bryndza, mozzarella, suluguni, chechil, sour cream cheese, and Gouda.

In 2017, Aikan underwent a major modernisation with support from the Damu Entrepreneurship Development Fund. The upgrades allowed the plant to process far more raw materials, fuelling ambitious expansion plans. However, as of the new year, the company has had to slash processing volumes due to suppliers struggling to provide proper documentation for milk deliveries under new tax rules.

The situation has forced Aikan to diversify its product lines just to keep employees busy. The company also points to rising imports of cheaper dairy products from Russia and Kyrgyzstan, which are increasing competition and squeezing out local producers. The combination of supply chain disruptions and foreign competition has left Aikan operating well below capacity. The company’s modern facilities now stand underused as it navigates regulatory and market pressures. The long-term impact on production and jobs remains uncertain.